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definitely helps you develop confidenceAgreed. I think it's worth emphasizing here that it builds up confidence in a very healthy way.
Growing up I was very insecure and (was) thought that building up confidence only had to do with getting a higher self-esteem. And sure, having a low self-esteem is bad for you health. But most ways of trying to improve it backfire. For example, if you think of things you're great at it makes you dependent on feeling that you're great at those things and then that can become a source of insecurity.
Meanwhile, learning to talk to strangers while hitchhiking is all about getting over yourself. A lot of the anxiety comes from the anticipation of being rejected making you feel horrible as if you were and imagining the worst possible ways it could make you feel. Basically, a normally healthy feedback loop to weigh options has become totally unbalanced and makes you suffer for something that neither happened nor has to happen.
More importantly, it suggests you're hyper-focused on yourself and on how others see you. And the irony here is: most people don't, and that's perfectly fine. Or as Melissa Dahl summarized in a title of an Aeon essay[0] about this: "you're simply not that big of a deal, now isn't that a relief?"
I'm sure most of us know this rationally, but feeling it emotionally is a different thing altogether. Well, hitchhiking is a great way to train that world-view. It was for me, at least.
[0] https://aeon.co/ideas/youre-simply-not-that-big-a-deal-now-i...